Initiative to Develop Pacific Finance and Insurance Products Launched with €1 Million Support from Luxembourg
The Fijian Government has officially launched an important new initiative to develop finance and insurance products that are tailor-made to the needs and circumstances of vulnerable and low-income households in Fiji and other Pacific Island Countries. The Government of Luxembourg will provide initial funding of 1 million euros for the initiative.
The Pacific Climate Finance and Insurance Incubator – known as the Drua Incubator – will bring together leaders in finance, investment and insurance to develop and “incubate” transformational and scalable financial and insurance products that meet the specific requirements of Pacific Small Island Development States.
The Fijian Attorney-General and Minister of Economy and responsible for climate change, Aiyaz Sayed-Khaiyum, said that incubator will look for ways to increase the flow of climate finance into Fiji and to make climate-related insurance more affordable.
“We need fresh thinking to find solutions that are sustainable. And to be sustainable these solutions must bring in the private sector,” he said.
“In terms of insurance, in Fiji, as elsewhere in the Pacific, currently many of the existing products have such stringent compliance requirements that they are simply too expensive for ordinary people. The Drua Incubator will allow us to develop new solutions to increase access to affordable climate change insurance for Pacific Island Countries and communities,” he said.
“The Drua Incubator will also be used to increase the flow of climate finance – especially private sector climate finance – into projects that helps PSIDS adapt to the effects of climate change,” he added. “As an example of such a project, the Government, recently launched the region’s first and the world’s third sovereign Green Bond, which in the short time since its launch has already received overwhelming interest from both domestic and international investors,” he said.
The incubator will also support the work the Government is doing to develop crop insurance in Fiji.